Shopify Presentation
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- 3. Tobi Lütke Robert Ashe Steven Collins Board Of Directors 3 CEO of Shopify Former CEO of Cognos CFO of ExactTarget Inc.
- 4. John Phillips Board Of Directors 4 CEO of Constant Contact Partner at Bessemer Venture Partners CEO of Klister Credit Corp
- 5. Tobias Lütke Born in 1980, Lütke dropped out of school in 10th grade and moved to Canada from Germany. Created Shopify in 2004 and served as CEO since 2008. First sold snowboards online but his real product was his software he coded himself that he used during the inception of Shopify. Current Net Worth: $1.4 billion USD CEO & Founder 5
- 6. Shopify Mission, CEO Remarks Make commerce better for everyone. 6
- 7. Company Vision “For Shopify, that means a lifetime commitment to keeping our software, features, and strategies ahead of the curve.” 7
- 8. C-Suite 8 COO: Harvey Finkelstein CPO: Craig Miller CMO: Jeff Weiser SVP of Support: Tony Shannan General Counsel: Joe Frasca CFO: Amy Shapero SVP of HR: Brittany ForsythSVP of Engineering: Jean- Michel Lemieux
- 9. Brand History 9 October 2004 Started off as Snow Devil and then Jaded Pixel June 2009 Launched the platform as Shopify April 2010 Launched mobile app in Apple App Store August 2013 Launched Shopify Payments May 2015 Went public & debuted on the NY Stock Exchange January 2017 Announced integration with Amazon April 2018 Announced partnership with Deliv September 2018 Announced plans to relocate employees in 2022 to The Wells
- 11. What Is Shopify Cont.. Example: So you want to start a business? 11
- 12. 12 Great for any size business! ● Equipped to deal with huge spikes in traffic ● Offers additional features, add-ins, content, templates, for premium plans ● Manages products, inventory, payments and shipping
- 13. 13 Customize your online store using themes, skins, and adding photos Currently Shopify works with 500,000+ customers in 150+ countries.
- 14. Trends impacting Shopify Influencer Marketing Social Shopping AR and VR 14
- 15. Financial Snapshot ● Market Cap ○ 17.288 Billion ● Market Share ○ 8.75% of Total Market ● Stock Price ○ $158.00 - $162.00 ● P/E Ratio ○ 0.00 ● Revenue ○ 2017 Annual Revenue $580.9 Million 15
- 16. BCG Matrix Star -Kylie Cosmetics Hosts periodic flash sales which are some of the largest on the internet Is an example of a Shopify store where products can sell out within minutes Rapidly growing + expanding Question Mark -BooTea Sold dietary detox teas Was one of the best marketed items on Instagram Currently has over 1 million customers worldwide Cash Cow -Shopify Services Dog -BeardBrand Sells men’s beard care Made $120k in less than a year Email list grew to over 7 thousand 16
- 17. Competitive Analysis - Direct Competitors SaaS Yes Yes No Beginning Price Structure $29/month $29.95/month Free Number of Templates/Themes 61 127 11 Ease of Use Easy to Use Easy to Use Learning Curve Free trial Yes Yes N/A 17
- 18. Competitive Analysis - Indirect Competitors ● Amazon Webstore shut down - August 2015 ● Selling on Amazon ○ Starting at $39.99 a month + additional selling fees ● Doesn’t allow for much control over design and fulfillment ● Massive traffic, limited recognition ○ Side by side competition 18
- 19. Trend Analysis Users can scroll through a shop’s Instagram feed and purchase the product. Browsing via an Instagram-like experience onsite bridges brand-awareness and product-discovery. 19
- 20. Trend Analysis Ecommerce Sales Globally: $1.3 trillion (2014) → $4.5 trillion (2021) Sales around the globe are growing so quickly that the US market share of retail ecommerce sales is dropping. China is the largest ecommerce market by far at $672 billion, almost double the US ($340 billion). 20
- 21. Trend Analysis Mobile accounts for only 38% of revenue and 59% of browsing sessions. Customers prefer to use a PC when purchasing products due to concerns of security, privacy, and ease-of-use. 67% of ecommerce revenue was conducted through a PC. 21
- 22. Trend Analysis Roughly half of all product searches happen on Amazon. Amazon is expected to make up about 50% of ecommerce sales by 2021. 22
- 23. Segmentation 23 Geographic Demographic Behavioral Psychographic Global Men and women ages 18+ Different price ranges for people of all incomes Innovators Artistic and passionate creators Ahead of the curve, open- minded, those always looking for convenience
- 24. SWOT Analysis Strengths ● Augmented Reality ● Strong Brand Portfolio ● High level of customer satisfaction ● Easy UI ● Trials Opportunities ● Influencers, Business Owners ● Augmented Reality ● Shopify App Store ● Drop Shipping Weaknesses ● Gaps in product range Threats ● Regulations ● Privacy Concerns ● Low Barrier Of Entry ● Amazon 24
- 25. 25 Target Market Entrepreneurs Ability to start up a business with very little startup costs, knowledge, or risk Ease of use - start a business with laptop and Shopify Business Owners Lighten existing business costs Shopify makes it easy to transfer business model from brick and mortar to digital Influencers Allows influencers to sell their products and merchandise to fans Bridges the gap between influencers and fans
- 26. Value Proposition Shopify offers a service that allows entrepreneurs, business owners, or your average joe open up an online ecommerce store that will handle all of your needs from beginning to end. Shopify excels in their ease of use and customer service allowing for anybody with a product to sell them across the globe. Shopify has disrupted the way that consumers sell products and handle their e-commerce website. 26
- 27. 27 Perceptual Map $$$ Price Convenience/ Ease of USe $
- 28. Profile ● Passionate about fashion, especially jewelry ● Works full-time as a fashion blogger in Los Angeles Hobbies ● Travelling ● Jewelry making ● Photography Goals ● Create side business of her favorite hobby: jewelry making ● Reach a wide range of potential customers ● Maximize social media platforms Profile ● Worked as an auditor for 15 years ● Started own business of men’s watches and bowties ● Employees: 20-30 Hobbies ● Downhill biking ● Wrestling ● Cooking ● Fashion Goals ● Keep business relevant in the age of social media ● Maintain high customer retention ● Stay ahead of the men’s accessories/fashion curve to bring new products to his customers Amanda Social Media Influencer Age: 22-28 Status: Single, no kids Education: Bachelor’s degree in PR Victor Business Owner Age: 45-50 Status: Married, 3 kids Education: Bachelor’s degree in Accounting, Master’s in Supply Chain 28
- 29. Brand Story We could have listed our products on a number of marketplaces, but we wanted to own our brand and build relationships with our customers, along with selling our goods. Such a tool didn’t exist, so we built it for ourselves. We soon realized a number of other stores were in need of a hassle-free platform to build their retail business, and Shopify was born. Shopify focuses on making commerce better for everyone, so businesses can focus on what they do best: building and selling their products. Today, merchants use their platform to manage every aspect of their business — from products to orders to customers, selling online, in retail stores, and on the go. 29
- 31. 31 Adoption Cycle Innovator Early Adopter
- 32. 32 Awareness Interest Consideration Intent Purchase Loyalty Social media marketing campaigns, TV commercials, Youtube Ads SEO, targeted content 2 week free trial offer, email campaigns 2 week trial acceptance Purchase of plan best fit for customer/business Influencers and businesses promote Shopify’s programs and services Advertising Funnel
- 33. Customer Journey Mapping YsabelAWARENESS ● Facebook ads ● E-shop ● Blog ● Banner ● newsletter CONSIDERATION ● Customers browse e-shop ● Product page ● Category page ACQUISITION ● Go through checkout ● Order confirmation ● Bill ● Delivery note ● Product LOYALTY ● Gives service rating ● Coupons for next purchase ● Receive newsletter for evaluation campaign SERVICE ● FAQs ● Packaging ● Return confirmation ● Calls hotline 33
- 34. 4 Digital Zones 34 Social Community ● Facebook ● Instagram ● CRM ● YouTube Social E-Commerce ● Amazon ● Alibaba ● Paypal Social Entertainment ● Netflix ● Gaming Social Publishing ● SEO ● Content Strategy ● Bloggers ● Website
- 35. Social Community Partner with American Express’ “Small Business Saturday” Campaign ➔ Facebook ➔ Instagram ➔ CRM 35 AMEX has long standing partnership with small businesses for this event - market those business and become an event partner to further promote shopify to business
- 36. Thank you, any questions? 36